CAB129-37 — Page 578

Page 578

5.

On the other hand, I learn that the Chairman of the Council, Lord Ismay, has, since the last Council meeting, obtained the most categorical assurance of Opposition support from Mr. R.A. Butler, and that Mr. Butler is willing to reaffirm this support publicly in the House of Commons if a Government statement is made in the tens of the Annex.

6.

I therefore feel, while most reluctant to forego the last £300,000 of the saving in gross cost originally envisaged, that the risks involved in pushing the matter any further would far outweigh any possible benefits. This need not affect the main objective of reducing the net cost of the Festival to the Exchequer: this can equally well be reduced to 89 millions by finding additional revenue of at least £300,000. This might be done, without prejudice to the principle that exhibits for the Festival exhibitions will be chosen entirely on merits, by subsequently levying a suitable charge on firms whose products are chosen for exhibition, or by other means. Whatever objections in principle may be felt to this course by the Council of Industrial Design should, I suggest, be re-examined in the interests of economy in public expenditure, and such a charge should be imposed unless the Festival Office can find an alternative way of raising an equivalent additional revenue, and thus maintaining the Festival's contribution of £1 million to the cuts in public expenditure announced by the Prime Minister.

I therefore ask the Cabinet:

7.

(a)

(b)

to agree that the Festival contribution to the

cuts announced by the Prime Minister should be made as proposed in paragraph 6 above;

to agree that I should make a statement in the

House of Commons in the terms of the Annex.

Privy Council Office, S.W.1.,

8th November, 1949.

H.M •

Page 578

Page 578

-2-

UJ:

ไม่

17

U

1 |

4 T

H

J